GST Registration in India & Complete GST Services — Handled by a CA Firm

Late filing of GSTR-3B attracts a late fee of ₹50 per day (₹25 CGST + ₹25 SGST) for returns with tax liability, and ₹20 per day (₹10 + ₹10) for nil returns — capped at ₹10,000 per return. Additionally, interest at 18% per annum is charged on unpaid GST from the due date. For GSTR-1, the late fee is ₹50 per day. Regular late filing also risks the suspension of GSTIN, blocking your ability to issue valid GST invoices.

GSTR-2B is an auto-drafted Input Tax Credit statement generated on the GST portal every month — showing all ITC available to a taxpayer based on their suppliers' GSTR-1 filings. From FY 2022-23, ITC can only be claimed to the extent it appears in GSTR-2B — ITC not reflected there cannot be claimed (Section 16(2)(aa) of CGST Act). Monthly reconciliation of GSTR-2B with your purchase register is essential to identify discrepancies before filing GSTR-3B.

A mismatch between GSTR-1 (outward supply details) and GSTR-3B (summary return) triggers an automated ASMT-10 scrutiny notice from the GST department. If the mismatch indicates underpayment of tax, a demand notice under Section 73 or 74 follows — with penalty of 10% of tax due (100% in fraud cases) plus interest at 18% per annum. Sharda Associates reconciles GSTR-1 and GSTR-3B figures before filing every month — preventing this trigger.

Mandatory GST audit by a CA under Section 35(5) was removed from FY 2020-21 onwards. However, businesses with annual aggregate turnover above ₹2 crore must file GSTR-9C — a self-certified reconciliation statement comparing annual return figures with audited financial statements. GST authorities can still order a special audit under Section 66 of the CGST Act at any time for any taxpayer. Sharda Associates prepares GSTR-9C and handles Section 66 special audit responses.

Exporters can claim refund of ITC accumulated on account of zero-rated exports (exports are 0% GST, but GST is paid on inputs). The refund process involves: filing RFD-01 on the GST portal, submitting shipping bills, bank realisation certificate (for services), GSTR-3B and GSTR-1 returns for the relevant period, and a CA-certified statement of ITC. The GST department processes refund within 60 days. Sharda Associates handles the complete export refund process for manufacturing exporters and service exporters.

Under the reverse charge mechanism (RCM), the buyer (recipient) is liable to pay GST — not the seller. RCM applies in two situations: when goods or services are purchased from unregistered vendors (in notified categories), and for specific notified services (legal services, transport by GTA, import of services, renting of motor vehicles). The buyer must deposit the RCM GST and can then claim it as ITC in the same return period. Missing RCM liability is a common audit trigger.

A GST demand notice must be responded to within the specified deadline — typically 30 days. The response must include a written reply explaining the grounds for disagreement (if contested) or payment of tax and penalty (if accepting). Ignoring a GST notice leads to ex-parte assessment orders that are harder to challenge. Sharda Associates reviews every GST notice immediately, prepares the appropriate reply with supporting documentation, and files it within the deadline. Call +91 89899 77769 as soon as you receive a notice.